The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.

The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Federal Reserve Banks are amending their Operating Circular 3, "Collection of Cash Items and Returned Checks," and Operating Circular 4, "Automated Clearing House Items." Circular 3 is being amended to include the following: Appendix G, which addresses Check Services accessible via the Internet; changes that conform the Operating Circular to certain adjustments procedures; establishment of a 2:00 p.m. cut-off hour for receipt of items; a new paragraph 5.7 in Appendix F; and a number of minor technical amendments.

Circular 4 is being amended to support the following: implementation of settlement day finality for ACH credit transactions; production implementation of international service to Canada; a new closing time for end-of-day deposits by depository institutions; a clarification with respect to the grant of a security interest by a sending or receiving bank to a Reserve Bank; and a requirement that banks implement physical security and management controls described in specified Fed publications.

A brief summary of the primary revisions to Circulars 3 and 4 is attached (pdf - 71kb). The summary information does not describe all of the provisions of the circulars or complete detail on the revisions. The revised Circulars are available in their entirety on the Federal Reserves Financial Services Internet site atwww.frbservices.org. From the website you may read, download and print the operating circulars. From the home page, click on "Industry Topics" and then on "Operating Circulars." Circulars may also be accessed from the individual service areas on the site. To request a paper copy of an operating circular or for additional information about the revisions to Circulars 3 and 4, please contact your Business Development representative. Questions on this matter may also be directed, at this Bank, to John Sobala, Senior Vice President, on Operating Circular No. 3, or to Henry Wiener, Vice President, on Operating Circular No. 4.